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4 min read
Updated 22 August 2025

Discover where to stay in Madrid: your neighbourhood guide

Type of trip
City breaks
A couple carrying luggage strolls by the Palace Hotel

Known as one of Madrid’s trendiest neighbourhoods, Malasaña is found within Centro Madrid, but is a unique neighbourhood where you can find independent shops and a bustling nightlife, attracting visitors internationally.

Madrid is a city loved for its late-night energy and vibrant cultural scene. When deciding where to stay in Madrid, knowing what each neighbourhood offers before booking can make your trip seamless. To help make your planning that bit smoother, in this article we cover some of Madrid’s most popular areas. From the nightlife of Malasaña to the literary history of Barrio de las Letras, discover which area suits your holiday preferences best.

Centro Madrid

Centro Madrid is where history and modernity come together to make for an unforgettable experience. This central district is home to six distinct neighbourhoods where you’ll be able to discover glimpses into Spain’s past while exploring modern hubs. If you want to be in the heart of the capital of Spain, look no further than Centro Madrid. 

Reasons to stay in Centro Madrid

A cultural hotspot

If you love to admire monuments and historical sites, Centro Madrid is the perfect place to visit as this district is full to the brim of culture and history. For example, the Royal Palace is nothing short of opulent – boasting grand architecture and impressive collections. Some famous artefacts within the palace include the Stradivarius Violins and royal regalia. Situated just a 10-minute walk from the palace, OLBLANC Plaza de España by Batuecas is a great hotel for your stay in this area. You won't even have to leave your room to soak in the district’s sights, as the property offers rooms with balconies and city views.

The multi-faceted Plaza Mayor

Plaza Mayor is a versatile square right in the center of Madrid, home to everything from restaurants to the city's annual Christmas market. In the day the plaza buzzes with tourists and locals. On the evening, the square's twinkling lights and the golden glow of the surrounding buildings makes for a charming setting. Situated around 150 metres away from the plaza is Pestana Collection Plaza Mayor, a hotel that boasts a terrace and a bar.

People stroll through Plaza Mayor in central Madrid, surrounded by historic architecture and vibrant atmosphere
Plaza Mayor, Centro Madrid

Malasaña

Known as one of Madrid’s trendiest neighbourhoods, Malasaña is found within Centro Madrid, but is a unique neighbourhood where you can find independent shops and a bustling nightlife, attracting visitors internationally. In the day you can peruse cafes and vintage stores, and in the nighttime you can feel the district really come to life.

Reasons to stay in Malasaña

Non-stop nightlife

Malasaña is a great place for night owls. And in true European style, the actual buzz of the evening starts at around 23:00, when locals transition from dinner to drinks. When it comes to clubbing, most venues don’t even become busy until 01:00, earliest.

Some local legends include La Vía Láctea, a bar filled to the brim with psychedelic art that plays 70s and 80s classics and El Penta, a bar that’s all about Spanish pop and rock music. 

Recharge after a night of dancing at Hotel Atlántico – with plush beds and a daily buffet breakfast, this will be the perfect place to relax.

An unforgettable food scene

Malasaña is also a must-visit spot if you love all things food. The area’s culinary scene comes alive on an evening and the best way to sample Malasaña’s cuisine is to go on a ‘tapas crawl’.

Many of Malasaña’s streets offer different clusters of tapas bars, so you can try out the eclectic mix of flavours from Madrid. Some popular eateries include Bodega de la Ardosa, La Musa Malasaña and Pez Tortilla. A stay in Akeah Hotel Gran Vía guarantees a comfortable stop after your food-fuelled adventures. Not to mention, the hotel also has a swimming pool, terrace, restaurant and bar.

A poolside view at Akeah Hotel Gran Vía, featuring chairs and a panoramic view of the city skyline
Akeah Hotel Gran Vía

La Latina

La Latina, found in Centro Madrid, is a must-visit destination to soak up old-world Spanish charm. Featuring flea markets, tavernas and narrow-winding streets, there’s a certain quaintness to La Latina that’s irresistible. Make sure to stop by this Spanish district to get a real taste of Madrid, as the neighbourhood captures the city's lively spirit and rich history.

Reasons to stay in La Latina

An irresistible atmosphere

La Latina is a district that loves atmospheric surroundings, quality food and delectable drinks. In the day, you can spend your time taking leisurely strolls, while in the evening you can dive into the charismatic food scene and try out some tapas bars, tavernas or wine bars. Consider staying at L&H La Latina Selection when in the district. Choose a room with a balcony or terrace to make your stay both scenic and relaxing.

Central location

For lovers of all things culture, La Latina promises a central location that’s close to some of Madrid’s most culture-rich spots. A popular attraction in the area includes Almudena Cathedral. This cathedral boasts over 400 columns, a Neo-Gothic exterior and a Neo-Romanesque crypt. If you fancy being as close to the action as possible, a stay at Posada del León de Oro Boutique Hotel is sure to do the trick.

Barrio de las Letras

For lovers of the arts, Barrio de las Letras (translating to ‘Neighbourhood of Letters’) is certainly the best area to stay in Madrid. The district has been home to famous writers and is a hotspot for theatre and performing arts.

Reasons to stay in Barrio de las Letras

Theatres galore

Theatre lovers: unite, as Barrio de las Letras offers many historic stages. One of the most renowned playhouses in this district includes Teatro Español, with performances dating back to 1583, offering a great way to experience a slice of history. Consider booking The Palace, a Luxury Collection Hotel for your stay in this district. As one of the most elegant hotels in Madrid, you’ll be treated to stained-glass windows and antique furniture.

Literary history

Similarly, if you’re a literary buff, Barrio de las Letras has a rich history to offer. The famous Miguel de Cervantes, author of Don Quixote, lived and died in this neighbourhood. His final resting place is located in Convento de las Trinitarias Descalzas and you can view plaques outside of where he used to live.

Barrio de las Letras is also the base for Callejón de Álvarez Gato, another spot with a rooted connection to literature. Once home to the Casa Gato tavern, the building’s façade featured concave and convex glass, distorting the figures of all who passed by. This particularly caught the eye of Ramón del Valle-Inclán, who referenced the mirrors of this alley in his work Luces de Bohemia. 

While the original mirrors no longer remain, new ones have been put in their place, still offering the same effect. And a stay at the chic Catalonia Puerta del Sol puts you a mere three-minute walk away from the alley.

A cosy bedroom with a balcony offering a view of Madrid's city skyline, located in Catalonia Puerta del Sol
Catalonia Puerta del Sol

Book your next trip to Madrid

Now you know where to stay in Madrid, all that’s left is to find the spot that suits your preferences. From the literary history of Barrio de las Letras to the food scene in La Latina, it’s time to book your flights – Madrid is waiting for you.